Some €91 million is to be spent providing homeless services in Dublin next year - more than 10 per cent of Dublin City Council’s €803.5 million budget for 2016.
The council had last year budgeted just over €59 million for homeless services in the city, but by the end of this year expects to have spent more than €70 million.
This means the increase in the budget between 2014 and 2016 for the services will reach more than 50per cent.
Council chief executive Owen Keegan said this was due largely to the "expensive and unsatisfactory" accommodation of homeless families in hotels.
“The number of persons presenting as homeless has increased significantly during 2015, despite 2014 having experienced a demand for homeless services that was then unprecedented,” he told councillors. “The numbers of families with dependent children presenting as homeless continues to grow.”
The council’s budget has increased by €30 million from €773 million in 2015, with the homeless crisis swallowing the increased funds. The level of expenditure on homeless services “increased disproportionately” to other local authority service costs in 2015.
Assurances
The council would from its own revenues contribute €17 million, and Mr Keegan said he expected the bulk of the remaining money to be provided by central Government.
"I am heartened by assurances given by [Minister for the Environment, Community and Local Government] Alan Kelly that his department will fund the additional costs of homeless services."
Overall, the city’s housing budget, which includes homeless services and is the council’s largest area of expenditure, has increased from an estimate of more than €237 million in 2015, and an actual spend of almost €250 million, to a 2016 budget of more than €276 million.
Rents will not be increased for council tenants next year.
The council has cut the rates paid by businesses each year since 2009, but Mr Keegan said it was “not possible to provide services to the current level in 2016” if the rates were reduced.
Councillors agreed not to cut commercial rates next year.
The councillors had voted in September not to increase Local Property Tax (LPT) next year. Mr Keegan said the net effect was “the funding that will be available to the City Council in 2016 as a consequence of LPT receipts, and that is provided for in the draft budget, will be just €4.1 million.”
Recouping
The council provides water and sewage services on the basis of spending and then recouping the money from Irish Water.
The council has budgeted just over €63 million for water services in 2016, down from €75 million last year. However, Mr Keegan said the council is still in negotiations with Irish Water about next year’s Service Level Agreement.
